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Budget Stocks: Investors will keep an eye on these 25 shares on the budget day – Budget 2025 and The Stock Market 25 Shares That Cold Ride The Budget Wave

Budget related stocks: Finance Minister Nirmala Sitharaman will present ‘General Budget 2025-26’ in Parliament on 1 February tomorrow. This will be his eighth budget as Finance Minister. This budget is coming at a time when there are many economic challenges at global and domestically. It is expected that this time the budget will pay great attention to development, infrastructure and capital experience. In such a situation, some sectors and special companies will be in the eyes of the stock market on this day.

Capex and Infrastructure

These shares will be monitored- L&T (L&T), Ultratech Cement

Capux and infrastructure sector may see new possibilities after the budget. After the unexpected results of the Lok Sabha elections, there was a possibility of slow growth in this sector, but the government is expected to improve with great emphasis on infrastructure projects. The government’s capital experience on the infrastructure sector is estimated to increase by 10–12%.

A strong order book for L&T keeps it in a better position. UltraTech Cement will also be in focus due to schemes like National Infrastructure Pipeline (NIP), Prime Minister’s speed power and Bharatmala Project. Apart from this, the proposed deduction in GST for cement sector can also support this sector.

Road and construction

These shares will be monitored- KNR Construction, Ashoka Buildcon

The allocation for the Ministry of Road Transport and Highways (MORTH) in the budget may increase by 5-6%. Build-operate-transfer (BOT) model can be preferred to promote private investment in highway projects. KNR Construction and Ashoka Buildcon are likely to benefit from the policies of MRTH. However, challenges in short-term may remain due to land acquisition and regulatory obstacles.

Power sector

These shares will be monitored- Siemens, Thermax

The power sector is facing a slowdown in demand in short-term, but it remains the main focus for the government. In the last year’s budget, Rs 20,502 crore was allocated to the Ministry of Power, which was 16 per cent higher than the previous year. This time the budget is estimated to have some similar announcement. Especially for renewable energy related steps

Siemens may get the benefit of increase in transmission pipeline. At the same time, thermax benefits from an estimated 13% CAGR growth in infrastructure and industrial capes.

Defense sector

These shares will be monitored- Hindustan Aeronautics (HAL), India Electronics (BEL)

The government has declared 2025 for the Defense Sector as the ‘year of reforms’ and under this, emphasis will be laid on modernization and indigenization. This time the defense budget is expected to spend more on electronics, military vehicles and aircraft, which can benefit defense manufacturing companies.

HAL received new orders worth ₹ 40,000 crore in FY24, and in FY25 the figure can cross ₹ 60,000 crore. At the same time, the market share of BEL (Bharat Electronics Limited) has been steadily increasing in the last 4 years and it has reached 12.8 percent in FY 2024. This company is ready to play a big role in the defense sector.

Railway sector

These shares will be monitored- RVNL, BEML, IRFC

The railway sector is expected to get 15-18% more budgetary allocation in this budget. Vande Bharat trains are planned and upgradation of 40,000 bogies is planned. Moneycontrol had earlier reported in a report that for 2025-26, the railway can be given budgetary allocation of up to ₹ 2.9-3 lakh crore. RVNL, BEML and IRFC can benefit from the expansion and modernization schemes of the Railways.

Real estate

These shares will be monitored- Oberoi Realty, PNB Housing, Aavas Financers

This sector is facing difficulties due to rising construction costs and old definitions of ‘affordable housing’. If the government takes steps like changes in the criteria of ‘affordable housing’, more tax exemption, subsidy and industry status to promote housing projects in the budget, then this sector can get relief.

Shares like PNB Housing and Aavas Financers are likely to benefit from these policy support. Apart from this, it is also being speculated that the government resumes the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY). This can increase demand in this sector.

FMCG and Consumption Sector

These shares will be monitored- Hul, ITC, Dabur, Marico, Emami

To promote conjugation, it is necessary that people have more money to spend. For this, steps such as tax deduction in the government and increase in standard deduction can be taken. Apart from this, measures to reduce excise duty on fuel can reduce inflation and increase consumer expenses.

Stocks like HUL and ITC are currently trading 22% and 16% below the highest level of their 52-week respectively. If new schemes are brought to increase consumer demand in the budget, then these companies can benefit.

Renewable energy

These shares will be monitored- Wari Energy, Inox Wind, NTPC Green, Adani Green Energy, Borosil Renewables

India has targeted 500 GW Renewable Energy by 2030. The current financial year added 15 GW new solar and wind energy in India between the first 8 months (April-November 2024), doubled compared to the same period last year. Schemes like PM-Kusum and Green Hydrogen are strengthening this sector. Meanwhile, strong growth is also seen in India’s solar sector. Emphasis is being laid on increasing solar capacity on roofs with schemes like PM Surya Ghar Yojana.

Also read- Union Budget FY2025: Will the stock market climb or fall next week after the budget is presented?

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